§ 14-129. Redemption of ground rent

   (a) Applicability. -- This section does not apply to a:

   (1) Home equity line of credit;

   (2) Loan secured by an indemnity deed of trust; or

   (3) Commercial loan.

(b) Notification. -- Before the settlement of a loan secured by a mortgage or deed of trust on residential real property improved by four or fewer single-family units that is subject to a redeemable ground rent, the settlement agent shall notify the borrower that:

   (1) The borrower has the right to redeem the ground rent under § 8-110 of this article;

   (2) The redemption amount is fixed by law but may also be negotiated with the ground lease holder for a different amount;

   (3) It may be possible to include the amount of the redemption in this loan;

   (4) For information on redeeming the ground rent, the borrower should contact the ground lease holder; and

   (5) For information on including the amount of the redemption in this loan, the borrower should contact the lender or credit grantor making this loan.

HISTORY: 2007, ch. 291.